# Cybersecurity Incident Disrupts US Bankruptcy Noticing Center Systems BAE Systems manages the affected infrastructure as federal courts face nationwide operational delays. - **Source:** [www.theregister.com - Articles (theregister.co.uk)](https://brifing.si/source/e6d4ec13-4d0e-407a-b96d-39609d76c3b1) - **Published:** 2026-10-16 - **Topic:** [Software & Engineering](https://brifing.si/c/engineering) - **Original article:** - **On Brifing:** https://brifing.si/s/dac78864-f72e-46d9-8825-8aea1b6946e4 ## System Outage Overview The Administrative Office of the US Courts confirmed a major cybersecurity incident affecting the Bankruptcy Noticing Center. BAE Systems, the vendor responsible for managing these electronic communication platforms, took the systems offline to investigate the breach. Consequently, critical portals like bnc.uscourts.gov and the National Creditor Registration Service remain currently inaccessible to users. ## Operational Impact Timeline While the official public notice was issued on Thursday, the Bankruptcy Court of the Eastern District of Texas reported that issues began on October 9. This disruption has halted the production and distribution of bankruptcy notices nationwide. Courts continue to accept filings, but the electronic service of orders faces significant, ongoing processing delays. ## Legal Procedural Adjustments To mitigate the impact of the outage, the Eastern District of Texas issued a general order. For cases filed on or after September 14 with an active motion to stay, the court extended the delay by an additional 30 days. This measure aims to maintain legal continuity despite the current inability to distribute notices. ## Vendor Response Strategy BAE Systems stated that the security incident is isolated specifically to the Bankruptcy Noticing Center infrastructure. The company is coordinating closely with the Administrative Office of the US Courts to address the vulnerability. They have taken immediate steps to secure the environment and are currently working to restore all affected operational services. ## Broader Public Sector Context This incident follows a series of cyberattacks targeting the US public sector throughout recent months. High-profile breaches, including the attack on the FBI by ShinyHunters and the compromise of the Arizona Judicial Branch, highlight the growing threat landscape. These events underscore the persistent challenges federal agencies face in protecting sensitive judicial data systems. ## Heightened Security Measures The US Courts had previously announced in August 2025 that they were actively increasing cybersecurity measures. This strategic shift was a direct response to the rising frequency of attempts to target the federal case management system. Despite these proactive efforts, the current BAE-managed system failure demonstrates the complexity of securing distributed judicial infrastructure. ## Data Integrity Concerns Recent attacks on other judicial branches involved criminal hackers or bots stealing personal data and backup court files. While the current BNC incident is described as isolated, the disruption of notice distribution creates uncertainty regarding the integrity of electronic communications. Officials have not yet detailed the specific nature of the data potentially exposed during this event. ## Future System Resilience The ongoing investigation into the BAE Systems incident will likely dictate future procurement and security protocols for the federal judiciary. As courts rely heavily on third-party vendors for case management, the ability to maintain service continuity during cyber incidents remains a critical priority. Stakeholders should anticipate further updates regarding the restoration of electronic services. ## Sources covering this story - https://www.theregister.com/security/2026/10/16/attack-on-bae-managed-system-disrupts-us-bankruptcy-courts/5303487 — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._